Dive Brief:
- BP is in the process of divesting about 10% of its company-operated retail sites, CEO Murray Auchincloss outlined in the company’s earnings presentation last week.
- Auchincloss did not disclose where in BP’s global network of company-operated sites the sales are happening, but noted that about 60% of these sites are in the contractual process.
- The move is part of BP’s ongoing cost-reduction strategy, which has also included thousands of corporate layoffs in an effort to cut expenses by $2 billion by 2026.
Dive Insight:
Despite not mentioning any region in which BP will be divesting stores, Auchincloss noted that the move aims to reflect the company’s “disciplined execution and a sharper focus on integrated mobility in our core markets.”
Given that the U.S., where BP has well over 1,000 company-operated sites under the TravelCenters of America, Ampm and Thorntons banners, has been a core area of focus in recent years, a large divestiture of any of these sites would be surprising.
However, during the presentation, Chief Financial Officer Kate Thompson said that BP is implementing a “targeted business improvement plan” for TA. This comes “in response to continued margin pressure,” Thompson said, and aims to improve adjusted free cash flow by $200 million to $300 million by 2027.
This plan comes less than a month after TA CEO Debi Boffa resigned after nearly 30 years with the company.
A spokesperson from BP declined to share further details about TA’s improvement plan. They did not respond by press time when asked to clarify the markets where BP intends to sell off company-operated c-stores.
As of August, about 60% of BP’s layoffs this year had come from within its customers and products segment, which includes BP’s global convenience store business. BP’s spokesperson confirmed to C-Store Dive in June that these changes impacted the corporate team at TA.
